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The Following Bond Has a Sinking Fund Requirement for Retiring

Question 84

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The following bond has a sinking fund requirement for retiring the entire principal amount of the issue on its maturity date. Calculate (to the nearest dollar) a) the size of the sinking fund payment at the end of every six months, b) the annual cost of the debt, c) the book value of the debt at the end of the indicated interval (rounding the sinking fund payment to the nearest dollar before calculating the book value).
The following bond has a sinking fund requirement for retiring the entire principal amount of the issue on its maturity date. Calculate (to the nearest dollar) a) the size of the sinking fund payment at the end of every six months, b) the annual cost of the debt, c) the book value of the debt at the end of the indicated interval (rounding the sinking fund payment to the nearest dollar before calculating the book value).

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a) $302,72...

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